The EURUSD encountered resistance at the 100-hour moving average and the 38.2% retracement of its recent downward move. Despite initially moving higher, the pair failed to extend above these levels, leading to a reversal in buyers’ momentum. The sellers took advantage of this inability to push higher and successfully pushed the price back below a previous support level. Currently, the buyers and sellers are more evenly balanced in the short term, but the buyers will need to prove their strength by surpassing key levels such as the 100-hour moving average, the 38.2% retracement, and the 1.0606 – 1.0616 area.
In the late US morning, the EURUSD made a bullish move towards the 100-hour moving average and the 38.2% retracement level, both of which posed strong resistance. Despite testing the moving average twice, the pair failed to break above, resulting in a shift from buyers to sellers. Consequently, the sellers were able to push the price below a significant support level observed in the previous trading session. Presently, the balance between buyers and sellers has become more equal in the short term, highlighting the need for the buyers to demonstrate their control by surpassing critical levels such as the 100-hour moving average, the 38.2% retracement, and the 1.0606 – 1.0616 area.
Although buyers initially dictated the corrective upside, their momentum was halted at the 100-hour moving average. The inability to breach this level calls for the buyers to prove their strength by surpassing significant resistances. This includes breaking above the 38.2% retracement level, staying above the 100-hour moving average, and remaining within the 1.0606 – 1.0616 area. These goals are crucial for the buyers to establish control in the medium term. Ultimately, the market’s outlook depends on the ability of the buyers to overcome these obstacles and exert further control over the EURUSD.
